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- Superloop (SLC) signs a subscriber transfer agreement to acquire all of private internet service provider MyRepublic’s NBN subscribers from December 23
- If all users migrate, SLC will acquire approximately 52,000 subscribers at $250 per migrated subscriber, bringing the total consideration to around $13 million
- The acquisition is expected to add $6.5 million of earnings before interest, taxes, depreciation and amortisation (EBITDA) to Superloop in the first 12 months
- The bulk of MyRepublic customers are expected to migrate to the Superloop brand during February 2023
- Shares in Superloop are up 9.56 per cent and trading at 75 cents as of 1:14 pm AEDT
Superloop (SLC) has signed a subscriber transfer agreement to acquire all of private internet service provider MyRepublic’s NBN subscribers from December 23.
If all MyRepublic NBN users migrate to Superloop, the company will acquire roughly 52,000 subscribers at $250 per migrated subscriber, bringing the total consideration to around $13 million.
The buy does not include any assets or liabilities of the MyRepublic legal entity.
On a post-synergy Pro-forma basis, the acquisition is expected to add $6.5 million of earnings before interest, taxes, depreciation and amortisation (EBITDA) to Superloop in the first 12 months.
“This purchase is strongly accretive for shareholders as it provides growth at scale at a very attractive multiple of approximately two times EBITDA (post-synergy),” Superloop CEO Paul Tyler said.
“Superloop’s unique, highly automated platform will allow for a seamless migration process with MyRepublic customers benefitting from Superloop’s attractive NBN plans.”
The bulk of MyRepublic customers are expected to migrate to the Superloop brand during February 2023.
The acquisition will be “immediately accretive”, according to Superloop, with all synergies being realised during the migration process, and it does not involve any material increase in Superloop operating and capital costs.
Post-acquisition, Superloop’s consumer segment will continue to target gross margins of 25 per cent.
Shares in Superloop were up 9.56 per cent and trading at 75 cents as of 1:14 pm AEDT.
